Kaua‘i Community College, partnered with ECMC Solutions to provide student loan counseling and support to borrowers as they navigate federal student loan repayment.
Contact ECMC Solutions by phone at 1-877-331-3262, or visit their website to make an appointment, connect through email, or web chat with a student loan counselor. The team at ECMC also offers a free webinar series to support borrowers as they navigate repayment.
Loan Information - What Do I Need to Know Before I Borrow
Federal Loan Updates, effective 2026–27 academic year
Important changes have been made to federal student loan programs.
Legislation recently passed by Congress, known as the One Big Beautiful Bill (OB3) Act, will result in significant modifications to the Federal Direct Loan program beginning with the 2026–2027 academic year (effective July 1, 2026).
If you are planning to utilize federal loans to finance your education in 2026–27 or later, we encourage you to review these updates carefully to understand how they may impact your financing plan.
Federal Student Aid has published updates and FAQs. You can view the updates on their OB3 Updates website.
For all students – Schedule of Reduction (SOR)
Beginning July 1, 2026, the amount you can borrow in Federal Direct Student Loans will depend on how many credits you’re enrolled in. To receive your full loan amount, you must be enrolled full time (12 credits per semester). If you enroll in fewer credits, your loan amount will be reduced based on your actual course load. There are no exceptions to this policy. This policy uses what’s called a “schedule of reduction,” or SOR, which means your loan eligibility can change throughout the academic year if your enrollment changes. For example, if you start fall semester full time but later drop a class or withdraw, your loan amount for spring semester may be reduced.
To qualify for federal student loans at all, you must be enrolled at least half time (6 credits per semester) with at least one home campus course that is required for your current degree, and be meeting Satisfactory Academic Progress (SAP) requirements.
New Lifetime Borrowing Cap
The legislation introduces a total aggregate lifetime limit of $257,500 for all federal student loans combined. This includes the total amount disbursed on all subsidized and unsubsidized undergraduate loans, as well as any future loans you take for a graduate or professional degree. This means that even if you pay off or receive a discharge on any amount of your loans, you can't borrow more than the lifetime maximum loan limit.
Legacy Provision (Grandfathering)
You may continue to borrow under the pre-OB3 rules (without the new lifetime borrowing cap) for up to 3 additional years if you meet BOTH of the following criteria:
- You are enrolled in the same credentialed program in 2026–27 that you were enrolled in prior to July 1, 2026.
- You borrowed a federal student loan (Subsidized or Unsubsidized) for that specific program before July 1, 2026.
If you change programs or start a new degree after July 1, 2026, you will be subject to the new limits.
How to Prepare
We understand these changes may create uncertainty as you plan for future years. Here are steps you can take now:
- Check Your Loan History: Log in to StudentAid.gov to view your current total loan balance.
- Understand Your Status: Determine if you will likely qualify for the Legacy Provision. If you are currently enrolled and have borrowed federal loans, you generally will.
We are here to help you and are closely monitoring the ongoing changes to federal guidelines. Please reach out to your campus financial aid office if you have any questions.
Federal Student Loans
The William D. Ford Federal Direct Loan Program provides students Subsidized and Unsubsidized and Parent PLUS loans from the Department of Education. Awards are determined by using the information provided on the FAFSA and your Cost of Attendance. The amount of your awards also depends on your Dependency Status and Grade Level.
- Direct SUBSIDIZED loans are offered to students who demonstrate financial need. Interest is paid by the federal government while the student is enrolled at least half-time status (6 credits or more) and up to 6 months after graduation.
- Direct UNSUBSIDIZED loans are typically offered to students who do not demonstrate financial need. The student is responsible for interest during all periods, from the time the loan is disbursed. If the student does not pay the interest while they are in school and during grace periods, deferment periods, or forbearance periods, the interest will accrue (accumulate) and be capitalized (added to the principal amount of the loan).
Interest Rates
Student loans are subject to interest rates which may be variable/fixed. View current interest rates.
Loan Fees
Student loans are subject to a loan fee of approximately 1% of your loan, which will be automatically deducted from each loan disbursement.
Disbursement
All student loans require two separate disbursements, one at the beginning of the loan period and the second at the midpoint of the loan period. In addition, first-year, first-time borrowers are required to complete 30 days of their first semester before receiving their first loan disbursement.
Repayment
Repayment begins six months (grace period) after the student ceases to be enrolled at least half-time, graduate, completely withdraw, transfer, or stop attending classes.
| Dependency Status & Grade Level | Base (Subsidized & Unsubsidized) | Additional Unsubsidized | Maximum Combined |
|---|---|---|---|
| Dependent Freshmen | $3,500 | $2,000 | $5,500 |
| Dependent Sophomore | $4,500 | $2,000 | $6,500 |
| Independent Freshmen | $3,500 | $6,000 | $9,500 |
| Independent Sophomore | $4,500 | $6,000 | $10,500 |
| Aggregate (LIFETIME) Limits for Subsidized and Unsubsidized Loans | Subsidized | TOTAL Subsidized and Unsubsidized |
|---|---|---|
| Dependent Undergraduates | $23,000 | $31,000 |
| Independent Undergraduates and Dependent Students whose parents are ineligible for the PLUS Loan | $23,000 | $57,500 |
Before you decide to borrow and how much to borrow, consider how much financing you will need to cover your educational cost.
Student A: Full time student - 12 credits each semester per year
| Financial aid offered | Pell Grant: $7,395 Loan: $5,500 |
| Direct costs to attend college full time | Tuition: $3,144 Fees: $79 Books/Supplies: $1,350 Total educational cost: $4,573/year |
| Off-campus living costs | Plans to live at home with parents and has some savings, so decides there will be no additional living expenses that need to be covered (housing, food, or transportation and personal expenses). |
Since the Pell Grant is more than enough to cover the direct costs, Student A decides they do not need a loan at this time.
Student B: Full time student - 12 credits each semester per year
| Financial aid offered | Pell Grant: $7,395 Loan: $10,500 |
| Direct costs to attend college full time | Tuition: $3,144 Fees: $79 Books/Supplies: $1,350 Total educational cost: $4,573/year |
| Off-campus living costs | Student lives off-campus with roommate. Rent/utilities: $1000/month Groceries: $400/month Transportation: $150/month Personal Expenses: $100/month Total living cost per month: $1,650 Total living cost (9 months): $14,850 |
| Part-time work | Earns $1,000/month Total: $9,000 for 9 months |
| Total cost to attend full-time | Total educational cost: $4,573 Total living cost: $14,850 Total: $19,423 Pell Grant: ($7,395) Student Income: ($9,000) Student needs approximately $3,527 to cover remaining cost |
Student considers options such as decreasing expenses, increasing work hours and applying for scholarships. If options don’t work out, student may borrow up to $10,500 to cover the difference.
Student A: Half time student - 6 credits each semester per year
| Financial aid offered | Pell Grant: $3,698 Loan: $5,500 |
| Direct costs to attend college half time | Tuition: $1,572 Fees: $79 Books/Supplies: $1,350 Total educational cost: $3,001/year |
| Off-campus living costs | Plans to live at home with parents and has some savings, so decides there will be no additional living expenses that need to be covered (housing, food, or transportation and personal expenses). |
Since the Pell Grant is more than enough to cover the direct costs, Student A decides they do not need a loan at this time.
Student B: Half time student - 6 credits each semester per year
| Financial aid offered | Pell Grant: $3,698 Loan: $10,500 |
| Direct costs to attend college half time | Tuition: $1,572 Fees: $79 Books/Supplies: $1,350 Total educational cost: $3,001/year |
| Off-campus living costs | Student lives off-campus with roommate. Rent/utilities: $1000/month Groceries: $400/month Transportation: $150/month Personal Expenses: $100/month Total living cost per month: $1,650 Total living cost (9 months): $14,850 |
| Part-time work | Earns $1,000/month Total: $9,000 for 9 months |
| Total cost to attend half-time | Total educational cost: $3,001 Total living cost: $14,850 Total: $17,851 Pell Grant: ($3,698) Student Income: ($9,000) Student needs approximately $5,153 to cover remaining cost |
Student considers options such as decreasing expenses, increasing work hours and applying for scholarships. If options don’t work out, student may borrow up to $10,500 to cover the difference.
Please Check the Cost of Attendance Page
Additional Information about Student Loans
Federal Direct Subsidized and Unsubsidized Student Loans
How Much Have I Borrowed?
If you are a previous borrower, to review your outstanding balance and preview what your monthly payments might be:
- Go to studentaid.gov
- Log in with your FSA ID and password
- Under your name on the top right corner, click on "My Aid"
If you are interested in taking a student loan...
Go to the Financial Aid Forms page, and complete the “Federal Direct Loan Request Form”
Contact the Kauai CC Financial Aid Office on your campus for assistance or more information.
